President Biden’s American Job Plan & the ETFs that can be affected
Mar. 31, 2021 4:47 PM ET iShares Transportation Average ETF (IYT) By: Jason Capul, SA News Editor 121 Comments
President Joe Biden has unveiled a $2T American Jobs Plan. The plan will have massive infrastructure implications that will affect numerous stocks and exchange traded funds.
The plan will target many different areas of the United States infrastructure, but some of the critical areas are transportation, broadband, water, and clean energy.
Regarding the transportation sector, fixing highways, rebuilding bridges, upgrading ports, airports, and transit systems are all a focus of the plan. Within the program, it states that it will "modernize 20,000 miles of highways, roads, and main-streets."
A few transportation-related exchange traded funds that can be affected by this plan are iShares Transportation Average ETF (BATS: IYT), SPDR S&P Transportation ETF (NYSEARCA: XTN), and First Trust Nasdaq Transportation ETF (NASDAQ: FTXR).
Broadband is a crucial coverage area within President Biden's plan as well. Broadband is referred to as the new form of electricity in the project.
The President's plan states it will "prioritize building "future proof" broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage." When investing in broadband, Defiance Next Gen Connectivity ETF (NYSEARCA: FIVG) may come into mind to investors.
Water is another major component of President Biden's American Jobs Plan. The goal will be to eliminate all lead pipes and service lines in our drinking water systems, improving American citizens' health and wellness.
Invesco Water Resources Portfolio ETF (NASDAQ: PHO) is a U.S based exchange-traded fund that provides clean water exposure. Furthermore, First Trust Water ETF (NYSEARCA: FIW) and, to a lesser extent Invesco S&P Global Water Index ETF (NYSEARCA: CGW), which only has 50% exposure to the United States, maybe suitable for investor.
Finally, clean energy, which President Biden believes presents enormous opportunities for new markets and new industries, is another focus area of the plan. A few clean energy ETFs worth noting that can be affected by this plan are Global Clean Energy Ishares ETF (NASDAQ: ICLN), Solar Invesco ETF (NYSEARCA: TAN), Nasdaq Clean Edge Green Energy Index Fund FT (NASDAQ: QCLN), and Wilderhill Clean Energy Invesco ETF (NYSEARCA: PBW).
One final ETF investors should analyze is the Global X Funds Global X U.S. Infrastructure Development ETF (BATS: PAVE).
It should be noted that clean energy ETFs have hit a milestone with $50b worth of shares traded in the first quarter of 2021. |
